Shandong Molong Petroleum Machinery (00568) plans to issue 25.67 million shares for a net fundraising of approximately HK$116 million.

Shandong Molong Petroleum Machinery (00568) announces that the company entered into a placement agreement with the placing agent on July 21, 2026 (after trading hours). Pursuant to the placement agreement and subject to the terms and conditions specified therein, the company will issue 25.6784 million new H shares with a par value of RMB 1.00 per share from its registered capital. The company agrees to issue the placement shares at the placement price, while the placing agent agrees to act as the company's agent to use their best efforts to procure placees to purchase the placement shares at the placement price. The placement shares will be offered and issued pursuant to the general mandate. Assuming all placement shares are fully allocated, the total expected gross proceeds from the placement are approximately HK$118 million, with the expected net proceeds from the placement (after deducting commissions and estimated expenses) totaling approximately HK$116 million. The company intends to use the net proceeds from the placement for the following purposes: (a) approximately 90% for repaying outstanding borrowings to optimize the financial structure of the group; and (b) approximately 10% for working capital and general corporate purposes. Assuming all placement shares are fully allocated, the placement shares represent approximately 10.03% of the existing 256 million H shares issued, and approximately 3.22% of the total number of shares issued as of the date of this announcement. Assuming no changes in the issued share capital other than the issuance of the placement shares from the date of this announcement until the completion of the placement, the placement shares would respectively represent approximately 9.11% of the existing H shares issued and approximately 3.12% of the total number of issued shares post the issuance of the placement shares. The total face value of the placement shares is RMB 25.6784 million.